Competent automobiles- worth investing?

Hi Guys,
My first post here. Competent is a Maruti car dealer and 3S support partner in three states- Punjab, Haryana and Hmachal. They were the first dealers of Maruti in India. The stock is showing a trend of increasing sales growth and the OPM margins are increasing significantly QOQ. This I see is a result of being a high fixed cost business, the more the capacity utilization,the greater the operating margin. Seems to meet all other financial criteria and has a very good reputation in the market. Sales growth should directly be a function of the Maruti sales growth. Will not see explosive growth as that will require setting up new dealerships. Besides the annual report says stable growth for 2015-16 and very bright beyond that. Please share your opinion.

From their website:
Competent’s status is re-affirmed every year at the All India Maruti Dealers’ Convention,the company bags maximum number of awards in all categories. Chief among these awards are those for best Sales, Service and Customer Satisfaction. Competent’s services have, in the past, consistently won the primary award that really matters to any organisation providing services - The Approval of the Customer. As a testimonial to this, Competent has enjoyed the most repeat customers among Maruti dealers. The company has sold more than 2,50,000 vehicles and the numbers are growing year on year.
Competent owes this to the breadth of the vision of Mr. Raj Chopra, who founded the company. Accurately gauging the temper of the Indian customer, Mr. Raj Chopra decided that nothing less than the very best would do - no matter how much it costs/costed in terms of time, effort and expense. Much before “Total Quality Management” and ISO accreditations became fashionable buzzwords in management circles; Competent Automobiles was more than living up to its name.
This has enabled the company to fully comply with the stringent norms set by MSIL while other dealers were only gearing up . Competent has been example and trend setter for Maruti Customers.


attended the AGM this week. Management is very clear in their strategy of investing surplus money in land. They do not intend to increase dividend in coming years, would retain it at INR 1/share in line with last so many years.